Yellen Upset by Cutting IRS Costs for Israel Aid
The Biden White House’s Reluctance to Aid Israel’s Defense
The Biden White House is suddenly less willing to aid Israel’s defense against Hamas terrorists now that Republicans have suggested dipping into the IRS’s recent funding bump — which the agency will doubtless use to keep targeting conservatives and protecting Democrats — to pay for it.
On Monday, Treasury Secretary Janet Yellen lashed out at House Republicans for introducing legislation that would provide aid to Israel using a fraction of the taxpayer dollars previously allocated to drastically increase funding for the Internal Revenue Service (IRS). According to Forbes, the $14.3 billion proposal would be paid for by slashing some of “the extra [IRS] funding approved in President Joe Biden’s Inflation Reduction Act.” The legislation was introduced a little more than a week after the White House proposed a $105 billion spending package that would force Congress to ship more billions to Ukraine as a package deal with U.S. aid to Israel.
The Impact of IRS Funding on Israel’s Aid
For context, the wrongly named “Inflation Reduction Act,” which was passed along party lines by the then-Democrat-controlled Congress last year, earmarked about $80 billion for an increase in IRS funding. These extra billions opened the door for the agency to hire roughly “87,000 additional employees over a decade, doubling the size of its workforce.” As The Federalist’s Elle Purnell previously noted, Democrat claims that the extra funding empowered the agency to “crack down on mega-corporations” fall flat when considering that the majority of IRS audits appear to be targeted towards Republican-friendly states in the South and West.
Meanwhile, there’s a “conspicuous shortage of audits in the Northeast and California,” which are more Democrat-friendly.
“I think if you put [House Republicans’ proposal] to the American people and they weigh the two needs, I think they’re going to say standing with Israel and protecting the innocent over there is in our national interest and is a more immediate need than IRS agents,” newly sworn-in House Speaker Mike Johnson, R-La., told Fox News.
House Republicans’ plan to return IRS spending to levels seen a few years ago didn’t sit too well with Yellen, who took to X to throw a tantrum over the proposal. After conflating support for America’s longstanding Middle Eastern ally with support for a corrupt Ukraine, Yellen baselessly claimed the GOP bill would indirectly “undermine[]” U.S. national security and “weaken our efforts to modernize the IRS – efforts which reduce the deficit, improve customer service for Americans, and make sure that wealthy tax cheats pay what they owe.”
Clearly, the administration’s effort thus far to “modernize” the IRS doesn’t mean shrinking the deficit but rather adding trillions of dollars to the U.S. national debt. In the first two and half years of Joe Biden’s presidency, the national debt rose by $4.8 trillion, going from $27.8 trillion in January 2021 to $32.6 trillion in July 2023.
But the administration’s desperate backlash against House Republicans’ proposal to reallocate a small portion of IRS funding isn’t surprising given that the agency has acted as a political arm of the Democrat Party for years. During the Obama administration, the IRS got busted for intentionally delaying applications for “tax-exempt status from right-of-center organizations” leading up to the 2012 elections. Numbering in the hundreds, these groups were “improperly subjected to baseless investigations, invasive and improper demands about their donors, and lengthy delays in processing routine paperwork.”
The Department of Justice (DOJ) ultimately settled with dozens of these groups in 2017.
More recently, the agency appears to have gone to great lengths to protect the Bidens’ widespread corruption. Earlier this year, an IRS whistleblower revealed that the agency removed he and his “entire investigative team” tasked with working on the Hunter Biden probe at the behest of the DOJ. Hunter, who has publicly admitted for years to being under criminal investigation for tax fraud, was indicted last month on “three felonies related to his unlawful purchase of a firearm in 2018.”
On top of covering for the Bidens, the agency was also the source of an illegal leak of former President Donald Trump’s tax returns. Last week, former IRS contractor Charles Littlejohn pled guilty to doing just that, having previously disclosed such information to The New York Times and ProPublica. Littlejohn is slated to receive little more than a slap on the wrist for his crimes.
As The Federalist reported, the DOJ charged Littlejohn with “one count of ‘disclosing tax return information without authorization,’” which normally “carries a maximum penalty of five years in prison.” A plea agreement announced by prosecutors, however, recommends the former IRS contractor “serve eight to 14 months in prison and pay a fine of up to $40,000.” A judge will ultimately have the final say on whether the agreement is approved.
What are the possible implications of the Biden administration’s reluctance to support legislation that prioritizes Israel’s defense needs?
Re Democratic-leaning states. This suggests that the IRS is using its resources to target conservative individuals and businesses, rather than focusing on legitimate tax enforcement efforts.
Given this context, it is understandable why House Republicans are proposing to reallocate some of the IRS funding to aid Israel’s defense against Hamas terrorists. Israel has long been a strategic ally of the United States and has faced numerous threats to its security, including attacks from Hamas. Providing aid to Israel is not only a moral imperative but also serves U.S. national interests in promoting stability in the Middle East.
However, the Biden White House has shown reluctance to support this legislation. Treasury Secretary Janet Yellen’s criticism of the Republican proposal indicates a lack of willingness to prioritize Israel’s defense needs. Instead, the White House is focused on allocating taxpayer dollars to other areas, such as the proposed spending package for Ukraine.
While providing aid to Ukraine may have its own merits, it is disconcerting that the Biden administration is seemingly sidelining Israel’s security concerns. The idea of tying U.S. aid to Israel with aid to Ukraine raises questions about the administration’s priorities in the region. It suggests a willingness to politicize foreign aid and use it as leverage for other geopolitical objectives.
Moreover, the fact that the IRS’s funding increase was primarily directed towards hiring new employees rather than improving tax enforcement efforts raises doubts about the agency’s effectiveness. If the IRS is not using its resources efficiently to target tax evasion and fraud, then reallocating some of its funding to aid Israel’s defense seems like a reasonable proposal.
Supporters of the Republican legislation argue that it is a responsible use of taxpayer dollars. By redirecting funds from an agency with questionable targeting practices towards supporting a crucial ally, the legislation aims to promote both fiscal prudence and national security interests.
It is crucial for the Biden White House to prioritize the security needs of our allies. Israel’s defense against Hamas terrorists should be a top concern, particularly given the recent escalation of violence in the region. The reluctance to aid Israel’s defense, coupled with the questionable practices of the IRS, raises concerns about the administration’s commitment to protecting American interests and supporting our allies.
As this legislation moves forward in Congress, it is important for lawmakers to consider the implications of their decisions. The United States has a longstanding commitment to Israel’s security, and it is essential that this commitment remains unwavering. Allocating taxpayer dollars to aid Israel’s defense is not only a sound policy decision but also a demonstration of our continued support for a key ally in a volatile region. The Biden administration must reconsider its reluctance to prioritize Israel’s security and ensure that our actions align with our values and strategic interests.
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